Gerald R. Ford: Allocation of the World's Resources

▪ Primary Source

      

      During September 1974, President Ford made two major addresses on the problems of the energy crisis and the use of the world's resources. He addressed the opening of the 29th session of the United Nations General Assembly on the 18th, and he spoke to the World Energy Conference in Detroit on the 23rd. His remarks brought forth immediate and somewhat vehement disagreements from many of the world's leaders, especially in the oil-producing countries and in the "Third World." They considered his statements about oil prices versus American food export policy to be little more than veiled threats. One of those who responded at length to the President's U.N. speech was Carlos Andres Pérez, the President of Venezuela. In an open letter published in many newspapers, Pérez stated the case of the Third World nations against the industrialized countries. Most of Ford's U.N. address is reprinted here.

      The nations in this hall are united by a deep concern for peace. We are united as well by our desire to ensure a better life for all people.

      Today, the economy of the world is under unprecedented stress. We need new approaches to international cooperation to respond effectively to the problems that we face. Developing and developed countries, market and nonmarket countries—we are all a part of one interdependent economic system.

      The food and oil crises demonstrate the extent of our interdependence. Many developing nations need the food surplus of a few developed nations. And many industrialized nations need the oil production of a few developing nations.

      Energy is required to produce food and food to produce energy—and both to provide a decent life for everyone. The problems of food and energy can be resolved on the basis of cooperation, or can, I should say, be made unmanageable on the basis of confrontation. Runaway inflation, propelled by food and oil price increases, is an early warning signal to all of us.

      Let us not delude ourselves. Failure to cooperate on oil and food and inflation could spell disaster for every nation represented in this room. The United Nations must not and need not allow this to occur. A global strategy for food and energy is urgently required.

      The United States believes four principles should guide a global approach:

      First, all nations must substantially increase production. Just to maintain the present standards of living the world must almost double its output of food and energy to match the expected increase in the world's population by the end of this century. To meet aspirations for a better life, production will have to expand at a significantly faster rate than population growth.

      Second, all nations must seek to achieve a level of prices which not only provides an incentive to producers but which consumers can afford. It should now be clear that the developed nations are not the only countries which demand and receive an adequate return for their goods. But it should also be clear that by confronting consumers with production restrictions, artificial pricing, and the prospect of ultimate bankruptcy, producers will eventually become the victims of their own actions.

      Third, all nations must avoid the abuse of man's fundamental needs for the sake of narrow national or bloc advantage. The attempt by any nation to use one commodity for political purposes will inevitably tempt other countries to use their commodities for their own purposes.

      Fourth, the nations of the world must assure that the poorest among us are not overwhelmed by rising prices of the imports necessary for their survival. The traditional aid donors and the increasingly wealthy oil producers must join in this effort.

      The United States recognizes the special responsibility we bear as the world's largest producer of food. That is why Secretary of State Kissinger proposed from this very podium last year a world food conference to define a global food policy. And that is one reason why we have removed domestic restrictions on food production in the United States.

      It has not been our policy to use food as a political weapon, despite the oil embargo and recent oil prices and production decisions.

      It would be tempting for the United States—beset by inflation and soaring energy prices—to turn a deaf ear to external appeals for food assistance, or to respond with internal appeals for export controls. But however difficult our own economic situation, we recognize that the plight of others is worse.

      Americans have always responded to human emergencies in the past, and we respond again here today. In response to Secretary General Waldheim's appeal and to help meet the long-term challenge in food, I reiterate: To help developing nations realize their aspirations to grow more of their own food, the United States will substantially increase its assistance to agricultural production programs in other countries.

      Next, to ensure that the survival of millions of our fellow men does not depend upon the vagaries of weather, the United States is prepared to join in a worldwide effort to negotiate, establish, and maintain an international system of food reserves. This system will work best if each nation is made responsible for managing the reserves that it will have available.

      Finally, to make certain that the more immediate needs for food are met this year, the United States will not only maintain the amount it spends for food shipments to nations in need but it will increase this amount this year.

      Thus, the United States is striving to help define and help contribute to a cooperative global policy to meet man's immediate and long-term need for food. We will set forth our comprehensive proposals at the World Food Conference in November.

      Now is the time for oil producers to define their conception of a global policy on energy to meet the growing need and to do this without imposing unacceptable burdens on the international monetary and trade system. A world of economic confrontation cannot be a world of political cooperation.

      If we fail to satisfy man's fundamental needs for energy and food, we face a threat not just to our aspirations for a better life for all our peoples but to our hopes for a more stable and a more peaceful world. By working together to overcome our common problems, mankind can turn from fear towards hope.

      From the time of the founding of the United Nations, America volunteered to help nations in need, frequently as the main benefactor. We were able to do it. We were glad to do it. But as new economic forces alter and reshape today's complex world, no nation can be expected to feed all the world's hungry peoples.

      Fortunately, however, many nations are increasingly able to help. And I call on them to join with us as truly united nations in the struggle to produce, to provide more food at lower prices for the hungry and, in general, a better life for the needy of this world.

      America will continue to do more than its share. But there are realistic limits to our capacities. There is no limit, however, to our determination to act in concert with other nations to fulfill the vision of the United Nations Charter, to save succeeding generations from the scourge of war, and to promote social progress and better standards, better standards of life in a larger freedom.

      Thank you very, very much.

Source: Weekly Compilation of Presidential Documents, September 23, 1974.

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